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tv   [untitled]    March 10, 2013 4:30am-5:00am EDT

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lawrence drone it was reported to be relatively small three four five six feet didn't really to be small in terms of drones so at this point we don't have the information but what we do know with certainty is that drones that you're going to be billable not only to government but to individuals and they will diversify in terms of their. size are going to be made us air forces already you know this is going to be making drones that are the size of an insect that can assassinate people so these this technology is here it's the german capital but more and more germans are moving out of berlin as their income can't keep pace with housing costs our correspondent there oliver a looks at who is forcing them out of their homes who are both sexy that's how billions met lovingly described his city. now some in his field based way of life is coming under threat if he isn't in because if you keep hearing chris burke
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we've seen big changes over the past ten years more and more apartment buildings have been built in areas where people traditionally used to rent what we're seeing is people being forced from their homes. real estate prices in berlin have shot up by thirty two percent since two thousand and seven well ahead of the german average this is resulted in some tenants being a victim as their rented flat says sold from underneath them prompting anger and demonstrations from those who see the city's identity being sold to the highest bidder isn't. our problem here is that berlin is turning into a city split between the haves and have nots rising prices of forced people who have lived here for years to move out and those who have come makes. this year has seen an increase in the amount of protests against the gentrification of lynn as well as growing resentment towards other germans and foreigners moving into the
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city for the most part the public image of this still poor sexy however times are changing the new emerging face of perlin is certainly stylish however it's also becoming increasingly an affordable due to the demand from people wanting to live in a desirable location economically viable and politically secure is becoming the place of choice for southern europeans to invest in during turbulent times in their own countries. count trends sells and rents property to italians. in the town. one of the main reasons our customers are buying here is that there is no trust in their telling economy or the banks people see an apartment in berlin as a good way to preserve the value of their savings but what about the claims that the real estate boom is stealing berlin sold. this is progress berlin is
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developing sure it presents some challenges but this is just the same as when the wall came down and people moved into her areas if anything this creates the mall she calls her a liaison. makes for a living what it is that this new housing developments are being built all around the city to try and accommodate demand however with rental prices having risen by ninety percent in the last decade it does seem that the writing is on the wall for the dream of an affordable life in the german capital peter all of the. air traffic seems to be on the rise in orbit a small russian spacecraft has been struck by remnants of a decommissioned chinese satellite marking the second such space collision a history will report online about the dangers debris. plus tens of thousands rally in tokyo saying that a world without nuclear power would be
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a better place to live had to r.t. dot com for the full story. the traditional british pint could soon become a luxury in the last five years that tax every beer is served has gone up so much probs are going out of business and scores sarah further reports from one community that's found an unconventional way to keep their only bar up and running. something is brewing in britain with any budget around the corner beer is set to rise again a third of the cost of a pint already goes to the tax man campaigners have said enough is enough and are calling for a freeze for six drinkers hang around ten challenge as much as drinkers in germany so will you just be right to hold. a hold on the book nor increase the charge yessica and keep down the cost for which pubs are time oh tradition in person but fully understand their appeal we have to go three hundred miles from london here to
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hesketh new market a village in the heart of england's countryside and steeped in history ten years ago when the only problem is but it is the sale the people who live to a rather than risk seeing it fall into the hands of a big chain and if you need character cite it's this something a little bit different matters into their own hands. together and pull the pub turning it into a cooperative believed to be the first of its kind in the u.k. the pub wasn't about money but it does turn a profit but even here the big g.t. hikes are felt every time prices. are the reason it's another. when the corner and the microbrewery that supplies the pub is also a co-operative that is doing well in the u.k.
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smaller brews pay hard the tax of the major companies best kidney markets been lucky a mixture of good business sense and strong community spirit has been the brewery and the pub have avoided the slide caused by the big g.t. escalator across the u.k. they and many others haven't been saved lucky big businesses can afford to pick up the tax tab it's small. independent pubs that suffer in the last four years nearly six thousand pups have closed resulting in tens of thousands of job losses from their email section is the only woman to sleep doing well at the moment for the city going against the trend not falling sales will be gradual you know here increases. in real values many times the prices the service will tend to be a proper. role for the school was a big screen serving sort of just really loving and sort of individual basis in an environment way from which are some of the world's largest. and beyond profits it's
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the risk of losing a petition stitch and this pretty things that she's savoring thoughts crossing so what this is mark is a community it brings people together. it's more of a difference between social networking and meeting something real life there is no substitute for this kind of trivia that's right the old crowd might be unique in britain these days harking back to a time of community that many of us have now the gulf in but it's a reminder to avoid some traditions best preserved sarah aleksey has kidney market in cumbria and in just a few minutes a former u.s. treasury inspector general tells us about washington's crucial mistakes in the high of a credit crunch in two thousand and eight. john
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kerry made his first major verbal gaffe as secretary of state by mixing the nonexistent country of kershaw to stand in one of his speeches of course it is funny when politicians misspeak george bush was pretty good at that but i can say that we all make mistakes when we speak trust me it is very easy to butcher the pronunciation of someplace on earth like course to low voltage or walla walla washington the thing is that he didn't just misspeak his speech was written correctly and if you look at his eyes as he said it he wasn't really looking at notes or something he's reading it off of a teleprompter right now i am reading off a teleprompter but i put every word there myself which is probably why john kerry is spelled with a q but my question is would kerry and prompter master obama just read anything put in front of them to even really know the realities of the tiriel they're reading in their speeches and who are deeply versed on some subject and you should need to read word for word from the teleprompter to give a speech just try writing some notes and speaking with your brain and maybe your
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heart like in the good old days but that's just my opinion. of. the speech. will. be so good. fifty.
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feet. too much juggling jog. do hack work and get caught when lobbyists money and lawmakers are combined together that's where the problem of corruption comes from. i don't know the document's. keep up a smart look. there is also. another way behind that which is how to influence the institutions steer clear of provocations don't answer any question. came into the office
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and found banners hanging around the office and lots of strange faces around so i said what's what's happening will somebody please tell me what's going on and they said oh we've come to occupy your building. possibly they wanted a confrontation possibly they wanted me to ring up the police have the police come and threw them out that didn't seem to be a good idea to learn the european way with brussels business and in the more pressing it's one person one fold but in brussels business it's one euro one fault . too nice to be told language. will use programs and documentaries in arabic it's all here on. reporting from the. well talks about six of the c.r.p. interviews an intriguing story for you. then try.
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to find out because it. he was the special inspector general in charge of overseeing the troubled assets relief program otherwise known as tarp and his three year experience is outlined in his book bailout how washington abandoned main street to rescue wall street r.t. is happy to be joined by neil barofsky for a one on one interview thank you very much for sitting down with me today it's my pleasure you refer to washington as an alley in world a culture more concerned with looking out for themselves or the next headline what happened with the tarp program that led you to say something like that well you know it was a remarkable thing coming in i was i was a lifelong democrat i even contributed to then senator obama's presidential
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campaign but i was actually appointed by president bush republican and it was sort of striking to me as a you know as a lifelong democrat of how little things have changed and everything i think over time it became increasingly so was very much politicized decisions were made with an eye towards the the press cycle what's what headlines are going to get generated and sometimes it just resulted in in remarkably head scratching counterfactual arguments that had very little to do with what tarp was supposed to do so the official story line official narrative which survives to this day is that tarp worked tarp was incredibly successful because it helped preserve the financial system but that's not what tarp was supposed to do history was a vote was eventually rewritten by the treasury department to make it seem like tarp all was ever supposed to do was put this band-aid over a broken financial system and all those other things for which there would never have been a bank bailout all those things are supposed to help people other than the executives
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at the giant financial solutions well that just got ignored and sort of brushed away you've said that the largest banks in the u.s. did and still do hold a gun to the head of america's financial system why essential in the most recent stuff that we've seen coming out. department of justice and they have done some big settlements they did was h.s.b.c. over sort of a breathtaking amount of money laundering they've done some of the library cases on the interest rate rigging with some of the big european banks and one of them that big questions has been raised well why are you not requiring guilty pleas from these these institutions with a response apartment of justice was well if we charge these institutions it could potentially destabilize the entire economic system of the world the global economic system and this is a i mean it's a stunning admission and look i give them an a for honesty this means that in essence there's two sets of rules and now the special subset of too big to fail
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slash too big to jail corporations and that of course creates a tremendous incentive to do what to commit more fraud to break the laws so who is managing the u.s. economy the government of the banks. you know look at that's a fair question a lot of the management of the government of the government in the economy is sort of outsourced in a way towards the banks you know that's how tarp was originally run was it wasn't that ok here we are us the government we have this these hundreds of billions of dollars we're going to save these banks we're going to save these guys for the purpose of we want the bags to put this money back into the economy to increase lending to businesses homeowners to get the economy rolling again but when they did it they didn't do it the way that you would think that you would if that was your goal would say ok banks j.p. morgan chase you know here's your twenty five billion dollars but when you use this you know you're going to agree that you're going to use it to increase lending and we're going to measure that or we're going to incentivize that or at least require it if not incentivize it and keep track of it like that's how you would think would
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be if the government was running the program but that's not what they did they gave us the facts no shrinks attached no conditions no requirements no incentives no transparency when i said hey hey guys why don't we make the banks tell us what they're doing with the money so we can own report. have a says whether filling these goals i was told that i was stupid that i was playing politics that if i did it myself i was going to destroy the banking system this led to tim geithner himself cursing me out of the meeting when i suggested he was a thing less than the most transparent secretary of the treasury in the country's history and this is all part of that incredible deference that they show to the bank so it was give the money to the bags and trust them and of course what happened the basin use the money from and they make they hoarded it they lied to back to the government they invested it they did whatever they could to maximize their profits they did almost everything other than increase lending and lending actually contract it so that certain example of where the government had incredible
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amount of control and leverage and chose not to use it is that because the banks have so much power and influence in washington and that number is number one reason why the banks. trumped the homeowners when it came to talk it was a remarkable thing so it's a yes but it's not like sort of just the traditional way we think of the way that any corp arch corporations or powerful corporations have influence in washington where we typically say that we think about all of the money in the campaign contributions and lobbying and all that it's totally valid but what i saw was far different and frankly far more insidious and to me much more damaging and dangerous it was more of the complete ideological capture of these individuals and by that i mean these are people who fought and believed they were doing the right thing but so would then a fired with the interest of wall street in the largest banks that that became the only the only thing that mattered but even those who didn't come from washington
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tim geitner secretary of the treasury was present in the new york fed. who never worked at a wall street bank but still was so surrounded by it and so had adopted this worldview that you know i don't think he was lying when he thought that oh i'm doing what's best for the country the problem. is that he was so blinded by this prejudice in favor of the wall street banks that that's all that mattered overall how much have the ballots cost the american economy what's your figure whatever i have a number of always just recounting whatever the officials are so treasury's official number now i think is in the new order of fifty to sixty billion dollar losses on the tarp program. i think that the see below is a lower number maybe about twenty four billion dollars of losses so i'm not i'm not sure of that but i think that there's this tendency to minimize the cost of the bailout to make it seem that oh it wasn't all that bad look at these numbers are low here where we made money on this part of the program that it glosses over
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really the incredible amount of damage i mean we're talking about in the tire years worth of g.d.p. or the entire production of the entire american economy wiped out because of this financial crisis and one of the biggest costs which we've not yet realized in the way the ballots were conducted is that we put essentially a bad date over a gaping chest wound and we have the same type of broken financial system that we did in two thousand and eight only with banks that are more concentrated more powerful and more dangerous and all the bad incentives that led to crisis in zero eight in many ways are still in place thus leading to why believe as the next financial crisis there's still chance to do the types of things to keep that from happening which i hope will happen but if left undisturbed whether it's two years four years or eight years it's going to happen again it's just sort of naive to look at all the incentives and all the things that are still in the system that caused crisis before and reserve that for some magical reason they won't happen
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again what are the biggest challenges for the u.s. economy at this stage is it still little or weak regulation is it the power of the banks or is it other issues like get unemployment what do. the number one challenge well it's all sort of short term medium term long term it's all it's sort of depending on what and what you do like right now we have an unemployment crisis in this country long term unemployed is just been devastating our unemployment rate is too high it's been too high for too long you know we're going to have people who are out of work for so many years it's going to be markedly difficult for them to to get back to work this fuels income inequality which is a very very significant problem in this country and is going to be a long term structural issue that somehow we're going to need to contend with you know the recent study came out that of the so-called financial recovery that the top one percent basically gobbled up all of the recovery amounts and then some
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while everyone else is guy actually gotten poorer a little bit richer got richer the poor got poorer these are sort of unsustainable long term trends that are really problematic for the economy as far as what i think is the biggest threat of a giant shock it is still the fragile nature of the banks and the amount of money that this will cost if we don't arrest it before another crisis strikes is staggering the last crisis cost thirteen trillion dollars one can only imagine what will happen next time because last time it least we had a lot of room fiscally we were our debt you know the debts in the deficit that we've been running since then have given us a lot less less flexibility to deal with the crisis the idea of getting an eight hundred billion dollars stimulus through congress and then in the face of the next crisis may be politically much more difficult getting a seven hundred billion dollar bad like what we had because in part because of the terrible way the bailout was run and minister is going to be a problem next time you know we could be looking at a crisis that will make the last one look almost pedestrian you know so that i
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think is really one of the sort of potentially medium to long term dangers to the economy that if we don't fix it you know could prove very very devastating do you think the euro zone should and bark on something similar to tarp you know i think that europe's problem with its bags is probably even worse than our. here in the country with our backs they're about you know european banks or even larger as far as percentage of the g.d.p. of the various countries i think they probably enjoy even more support through the implicit guarantee which is all but explicitly the difference between you know deutsche bank in the german government is almost it's almost impossible to discern a large a lot of large european banks are are simply are beyond too big to fail so you have a situation there where these banks get into a crisis the european governments are going to have to bail them out but my advice is don't do what we did which is just preserve that status quo and then move on which is what we've done here and leave that broken status quo in place europe
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should do exactly what the united states needs to do break up these institutions what do you think it will take for u.s. banks to face true justice or for the government to actually put the citizens for banks nothing's going to happen in the near term i think that's pretty clear the only way i think to break through and get the types of reform that we need will be one in the aftermath of another crisis which is you know which is which i think will be devastating and let's hope that that doesn't happen but most realistically that's probably the way we're secondly i think if there's another good big enough significant enough scandal and the one reliable things about the largest banks is that they are scandal producing machines it's again it's not surprising it's because of the incentives it's because of the lack of accountability or lack of punishment it's profitable to commit fraud or bend the rules or break the rules or take huge risks the differences between now and two thousand and eight is that
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there are a lot more people out there now politicians academics journalists who recognize that we have a broken system who recognize that the only path towards a stable economic system that will benefit everyone is by breaking up the large financial institutions it's not enough and not enough. little power to get it done now but i think if when the time is right there is enough support that i hope that this can get move forward and finally get the protections that we should have had back in two thousand and ten but don't have yet it's pretty bad right now how much worse for it have to get you know i don't know and you know we saw glimpses of the occupy wall street movement we saw glimpses in the tea party movement you know which was originally about the unfairness of the bailouts was what triggered a lot of the tea party or anger but we also saw those movements you know are they've transformed so i think there's a lot of anger out there still but it hasn't found a place to be channeled and but look i think we continue go down this path it's
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almost inevitable that it will start to once again erupt and the question is what is that trigger going to be a can it turn to something more than a bunch of angry people yelling it into a significant political movement you know it didn't happen with the presidential race of two thousand and twelve but you know again i think it's going to be take some additional accidental shock to get people into into this game but it is a problem and it is you know some of the stuff is difficult to to understand actually i don't think it's that difficult understanding it's actually made complex by the banks and the politicians in order to make people think that it's more complicated that it actually is and look one of things i try to do in this book is try to explain ways in ways that people can understand and realize that you know what you don't need a doctorate in finance to understand that our system is broken and that you know so much of the banks lobbying power and the politicians power is try to confuse people with concepts that are under true just simple distortions of basic economic truths
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in order to carry their agenda and try to you know educate and bring people up to speed on this stuff is probably part of that process now thank you very much for your time my pleasure. my juggling job. to do hack work and get caught when lobbyists money and lawmakers are combined together that's where the problem of corruption comes from. i don't know the document's. keep up
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a smart look. there is also. another word behind that which is how to influence the citizens to steer clear of provocations don't answer any question. came into the office and found banners hanging around the office and lots of strange faces around someone and said what's what's happening will somebody please tell me what's going on and they said oh we've come to occupy your building. possibly they want to do a confrontation possibly they wanted me to ring up the police and have the police come in through the mount but it didn't seem to be a good idea to learn the european way with brussels business and in the ocracy it's one person one fault but in brussels business it's one euro one fault.
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